Francis G.X. Pileggi (LexBlog China)

In Re China Automotive Systems, Inc., Derivative Litigation, Cons. C.A. No. 7145-VCN (Del. Ch., Aug. 30, 2013) This decision provides an excellent review of the settled Delaware law on the issue of pre-suit demand requirements and the prerequisites for satisfying demand futility, especially in connection with a Caremark claim, based on the well-worn Aronson and Rales...

In Re China Agritech, Inc. Shareholder Derivative Litigation, C.A. No. 7163-VCL (Del. Ch. May 21, 2013). Issue Addressed:  Whether a complaint that fails to plead that demand was made on the Board and fails to plead demand futility should be dismissed under Rules 23.1 or 12(b)(6). Short Answer:  No.  Motions to dismiss denied. Practice Tips...

Rich v. Chong, C. A. No. 7616-VCG  ( Del. Ch., April 25, 2013). Issue Addressed:  Whether a motion to dismiss Caremark claims in a derivative action against directors of a Delaware Corporation can proceed where the plaintiff shareholder made a demand on the board but the board failed to respond to the demand for over...

In re Puda Coal, Inc. Stockholders Litigation, C.A. No. 6476-CS (Del. Ch. Feb. 6, 2013)(Bench ruling). Thanks to Tariq Mundiya of Willkie Farr for forwarding the transcript. This bench ruling, highlighted on The Harvard Law School Corporate Governance Blog, for which I am a contributing author, addressed a claim for a breach of the board’s duty of...

In re Heckman Corporation Securities Litigation, C.A. No. 10-378-LPS-MPT  (D.Del. Nov. 22, 2011), read opinion here. This decision of the U.S. District Court for the District of Delaware dealt with the issue of whether former counsel for a former corporate officer could be forced to assist in serving process on their former client. The Court in...

The Delaware Court of Chancery yesterday denied a Motion to Dismiss a  shareholder’s demand for books and records of a company based on DGCL Section 220. The Court ruled that the issue of whether this action was an attempt to circumvent the stay on discovery imposed in a related federal securities action, was an issue...

Here is a post by Prof. Donald Clarke on the Conglomerate blog, about the inability to enforce, predictably, any of the corporate governance principles that are on the books in China. This must be a serious limitation on the ability of China to become a major world economic leader as well as a source of hesitancy for those thinking...

Prof. Ribstein posts about his trip to China where he was invited to assist that country with the development of a new partnership law, and he observes that in his view their efforts are an indication of the rise of U.S. partnership law as a world standard. Of course, Delaware caselaw on partnership law is...